Westinghouse Will Pay New Boss $1 Million a Year, Bonuses
The new chairman and chief executive of Westinghouse Electric Corp. will receive an annual salary of $1 million, a figure 43% higher than that of his predecessor, who was forced out.
Michael H. Jordan also received a $400,000 signing bonus when he was hired June 30 and is eligible for other bonuses, according to a Westinghouse filing with the Securities and Exchange Commission.
Jordan, 57, a former Pepsico Inc. executive with no background in heavy manufacturing, was chosen to replace Paul E. Lego, who resigned under pressure in January after a stormy 2 1/2-year tenure.
Westinghouse, which has interests in defense electronics, power plants, broadcasting and other businesses, has been strained by losses at its financial-services units. Jordan was hired to shepherd its restructuring.
The SEC filing said the company will set an annual target bonus for Jordan of no less than $500,000. His bonus will be tied to goals set prior to each year.
As part of the company’s long-term bonus program, Jordan could receive an additional $500,000 if the company reaches certain goals, the company said.
Jordan’s income will also depend on the value of the company’s stock, which lost 50 cents Monday to close at $13.25 in New York Stock Exchange trading. His compensation package includes three stock-option grants totaling 1 million shares, according to the filing.
The first 500,000 shares, which can’t be exercised for one year, carry an option price of $15.44 a share. Another 250,000 shares have the same option price but can’t be exercised for three years. The final 250,000 shares can be exercised after four years or when the company’s stock is $26 a share.
Westinghouse announced plans in November to sell four divisions to cut debt by more than $5 billion within two years.
Jordan announced Friday that the company’s earnings for the third quarter are likely to fall about 50% because of poor performance by several of its business units, especially the environmental cleanup division.
